Grameen Bank

Tiny Loans, Huge Returns: Why Microlending Works

Sometimes, small gestures can make huge differences in people's lives and livelihoods. That's the premise -- and the power -- of microlending. For proof, one need look no further than the stories of Marcia and Karen, two entrepreneurs in Costa Rica.

Borrowing Trouble at Microlender Prosper.com

Peer-to-peer lending site Prosper.com has stopped letting high-risk borrowers use its site because too many of them failed to repay their loans. The site's problem, says columnist and one-time lender Alex Salkever, is that Prosper got in the way of letting a social bond form between microborrower and microlender.

In Peru, Tiny Loans Add Up to Big Business

Microloans have taken off in Peru, where informal employment is high and access to credit is low. Now, the nation ranks No. 1 in the annual Economist Intelligence Unit survey of world's best business environments for microlending. In fact, five of the top 10 countries are in Latin America.